Gaming | Mass market wins drive Wynn revenue up 70.5% in H1

Wynn Macau Limited’s total operating revenue increased by 70.5% from HKD3.97 billion in the first half (H1) of 2020 to HKD6.76 billion in H1 2021, predominantly driven by a surge in mass market table games win at both Wynn Palace and Wynn Macau.
The group’s aggregate mass market table games win surged by 103.6% from HKD2.02 billion in H1 2020 to HKD4.11 billion in H1 2021. In a statement from the group, Wynn said this climb was driven by an “increase in business volumes of both Wynn Palace and Wynn Macau, with total mass market table drop up 130.2%, from HKD8.69 billion in H1 2020 to HKD20.00 billion in H1 2021,” which was partially offset by a drop in mass market table games win percentage at both properties.
On the other hand, VIP table games win increased from HKD1.72 billion in H1 2020 to HKD2.06 billion in H1 2021, up 20.3% year-on-year, representing a relatively smaller increase when compared to that of the mass market.
The aggregate gaming revenue of the group stood high at HKD5.27 billion (78% of the group’s total operating revenue) in H1 2021, when compared to HKD2.98 billion (75.1% of total operating revenue) during the first six months of last year.
For non-gaming revenue, including rooms, food and beverage and retail and other revenue, the group also saw a 51.2% increase in net revenue, which rose from HKD0.99 billion (24.9% of total operating revenue) in H1 2020 to HKD1.49 billion (22% of total operating revenue) in H1 2021.
Overall, the net loss attributable to owners of the group shrunk by 45% from HKD3.92 billion for H1 2020 to HKD2.16 billion for H1 2021.
The adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) for the group was HKD660 million in the first six months of 2021, representing a sharp improvement from the adjusted EBITDA loss of around HKD1.40 billion in the same period last year.
Echoing other casino operators’ worries, Wynn Macau also expressed concern about uncertainties in the concession renewal or extension process, but “at this time believes that its concession will be renewed or extended beyond June 26, 2022.”
The group also noted that the unpredictable Covid-19 pandemic and ensuing containment measures “could continue to adversely impact our financial condition and operations.” The impact of this on the group’s business “cannot be reasonably estimated at this time.”
Despite the pandemic, the group has continued to design the second phase of Wynn Palace, featuring non-gaming amenities like event spaces, interactive entertainment installations, food and beverage offerings, and additional hotel rooms. The group aims to position the coming new attraction as “a unique world-class cultural destination.”